It's no secret that our five senses -- sight, touch, taste, smell, and sound -- exert a powerful influence on our everyday purchase decisions. Such is the argument made by Martin Lindstrom in "Brand Sense," which stresses that retailers that deliver a multi-sensory experience achieve greater sales and higher levels of brand awareness in the minds of customers. Here are a few findings that illustrate how important it is for companies to appeal to consumers' senses to shape their behavior: In a study published in the Journal of Consumer Research , Ronald E. Millman showed that the pace of music playing in the background of restaurants and stores had a considerable effect on spending, traffic flow, and service. The slower the music, the more people shop. The faster the music, the less money people fork over. Related studies have demonstrated that the slower the music at restaurants, the longer people stay wining and dining. In fact, the average bill for diners was 2...

I recently read an article stating that 62% of Americans have less than $1,000 in savings. What's worse, 21% of them don't even have a savings account! Supposedly, Americans have been saving more since the global recession, but the stat above doesn't seem to bear that out. One of the most discussed topics on this forum is consumer behavior, as my background is in psychology and marketing. It's imperative that Americans -- and people throughout the world, for that matter -- practice saving responsibly. The best way to save money is by living below one's means. Spending hundreds of dollars on clothing and food every week doesn't help your pocketbook in any way,  especially if you have the tendency to run up your credit card bills and pay late. I'm not saying you can't treat yourself to a good meal here and there, but spending -- just like eating amd drinking -- should be done in moderation. As I tell many of my cash-strapped friends, sometimes ...

Do you think you'd be more inclined to buy a product priced at $3.99 than one that sells for $4? I can picture many of you shaking your heads. According to various studies in consumer behavior, people are far more likely to buy a product when the price ends in .99. But why? For one, consumers tend to read from left to right, which means our attention becomes fixated on the first number as opposed to the ones that follow. Even though you're hardly getting a greater bargain by opting for something priced a cent cheaper (especially since taxes come into play), your indifference to reading the whole way across actually fools you into thinking you are snagging a deal. It's as though we're comparing something priced at $3 to something that costs $4. It doesn't make much logical sense, but most consumers will do anything to expend the least amount of brainpower possible, especially when pressed for time. In addition, shoppers tend to deem prices ending in cents...

Have you noticed that we tend to derive more pleasure from pursuing a product than actually using it? It's very much like dating and relationships. Some people feel that chasing after a love interest is more exhilarating than actually locking in and dating the person. I majored in marketing and minored in psychology, so I know full well that emotions play a pivotal role in consumer behavior. Emotions, stirred up in part by the advertisements that assail us on a daily basis, are what drive us to buy stuff -- and that includes products that we may neither need or use. Whether it's the sense of accomplishment that comes over us when we take advantage of a "buy one, get one free" sale or the prospect of buying something that can help us shed weight, look younger, or land more dates, purchasing things gives us an emotional high not unlike that experienced when kissing someone for the first time or receiving your first paycheck. But once you have the object of your de...

Judging from the purchase behavior of some of my friends, family members, and coworkers, it's apparent that some people are heavily influenced by advertising. I've lost track of the many times in recent weeks that people around me have admitted to being swayed by an ad in a newspaper or magazine, a banner ad on a website, or ubiquitous TV commercials. And it's not as if they feel compelled to purchase things they really need; usually, they already have heaps of whatever it is they're looking to buy stocked in their drawers or closets -- be it cologne, shirts, or shoes. This is precisely why I studied marketing and psychology -- so that I can be impervious to the advertisements we're assailed by daily and immune to the underhanded tactics that salespeople at mobile phone stores, car dealerships, and other places attempt to employ. I recommend that people only let their guard down when it comes to advertisements for products they really need -- the kinds of produc...